A new report by BMO Capital Markets paints a picture of Minnesota's economy as slowly but surely recovering. The unemployment rate of less than six percent is helped by fresh hiring in the construction industry and an easing of job cuts among government employees. Housing is still considered a weak spot, but at least prices are recovering and there are signs that more building is on the horizon.

A new report by BMO Capital Markets sizes up Minnesota's economy with the phrase "modest growth." The bankers see the state's unemployment rate of 5.8 percent as a strength, especially now that cutbacks among government agencies have eased. Exports are not soaring like they were a year ago, but are slowly growing. And while the housing industry has not exactly recovered, the upturn in home prices is encouraging.

Of course, economic generalizations about the whole state can be tricky. The Department of Employment and Economic Development notes that each of the 87 counties has an economic life of its own. A recently published map breaks down the leading industry in each.

One of the challenges confronting Minnesota's economy is the task of absorbing more than 300,000 veterans who are entering or rejoining the workforce. The unemployment rate among veterans is nearly double that of the general population.

ADVERTISEMENT

Thanks for watching!

There are also storm clouds - or maybe a lack of clouds - over the agricultural economy. State Ag Commissioner Dave Frederickson writes in Agweek that the ongoing drought looms as a potential drain on the state's $75 billion farm economy.

Minnesota is creating jobs, unemployment is falling, and the number of workers for every job opening is shrinking. That additional work has not yet turned the housing market around, but experts say the overall outlook for the state is strong.

Job vacancies were up nearly 50 percent in the fourth quarter of 2011, compared with the same period a year earlier. Employers reported nearly 50,000 job openings, according to the latest figures from the Department of Employment and Economic Development.

Summer flooding did not put a damper on fall hiring in Duluth. The region had its best September for job growth since 1992 with a spike of 2,200 jobs compared to August, according to a new state report, the Duluth News Tribune reports. It was welcome news after a general slump in job growth that has stretched for more than a year.

The Minnesota 2020 study says airports have had a $12 billion impact on the state’s economy -- but most of the activity was concentrated at the state’s three largest airports, Minneapolis-St. Paul, Duluth and Rochester.

31 percent of Minnesota business owners and managers surveyed by the state chamber of commerce and a public relations firm see the state's economy improving. That's up from just 13 percent in last year's Business Barometer survey. As for what obstacles they face, high taxes was the most common concern followed by health care costs and finding qualified workers.